with the following costs and relevant information that are assumed for year 20XY. Help me prepare a
Question:
with the following costs and relevant information that are assumed for year 20XY.
Help me prepare a budgeted income statement, assuming 600 units to be produced and sold, a per unit selling price of $85, an income tax rate of 28% and the following information.
a.Cost of goods sold of $35 per unit
b.Labor = $400/month
One part-time employee will be hired to take care of packaging and shipping. This employee will be paid $10 per hour. He or she is estimated to work 40 hours total per month.
c.Advertising fees = $3,000
d.Bank fees = $200
e.Phone/internet =$150 per month
f.Shipping = $3 per unit
g.Utilities = $100 per month
h.Office Supplies = $900
i.Conference Exhibitor Fee = $3000
j.Travel Expenses for Conference (e.g. airfare, meals, taxi) = $1200
With the following information can you please help me find the following:
Net Present Value:With adding a new piece of equipment that will speed up the process of building the bobble heads. The cost of the piece of equipment is $42000. It is expected that the new piece of equipment will lead to cash flows of $17000, $29000, and $40000 over the next 3 years. If the appropriate discount rate is 12%, what is the NPV of this investment? Explain the findings.
Budget Preparation:Based on the budgeted income statement calculated above for 20XY, prepare a new budgeted income for 20XZ assuming that the production and sales is double the level of 20XY.
Incremental Analysis:If production does increase dramatically after their presentation on Shark Tank, the Lees will need more space for production. They have two options. Option 1 is to rent out a spacious warehouse nearby. If they pursue this option, there rent will be $1200 per month and utilities are estimated to cost an additional $350 per month. Their second option, Option 2, is to rent a smaller storefront space that is also nearby. The storefront rent is $1350 per month. However, utilities will likely only cost an additional $150 per month. They want to compare their options over one year's time (since each rental contract is a 1 year commitment). What is the incremental analysis if the Lees choose Option 1 over Option 2?
Break-Even Analysis:You have been asked to calculate how many units need to be sold to break even, based on the costs provided in task #3. Assume that only one conference will be attended and the estimated expenses associated with this conference are on target. Use the information in task #3 except do not consider taxes.)
Contribution Margin:Based on the Break-Even Analysis just performed, what is the contribution margin per unit and the total contribution margin?
Managerial Accounting
ISBN: 978-0176223311
1st Canadian Edition
Authors: Karen Wilken Braun, Wendy Tietz, Walter Harrison, Rhonda Pyp